Update.
HD GB management visited the dealership last week. They have made a considerable cash offer to assist in the purchase of a new 120ST engine. This is great news. I wont go into the dollar numbers here on the forum but a new engine fitted is not the nicest of things to spend ones hard earned cash on, not really knowing if something else might go down in the drive train in the future. So I decided I am not going to go the route of a new engine. The dealership are going to strip the engine down at their expense to determine what has actually broken within the engine, and will let me know. But there is no denying that an awful mechanical clattering sound and oil smoke when the engine gets fired up and chunks of metal and various bits of bearings in the sump are pretty conclusive in knowing that the engine is shot. The engine has always used oil from the day one that I purchased the 2012 bike. Not a lot, but when I said this to the mechanic at the dealership he did think that the usage was excessive and that maybe there was an issue there from the start of the bike's life. Anyway, that's in the past. Now for the present and future?
Rather than a new engine, I proposed to the dealership that they take my 2012 FLHXSE3 as a down deposit on a new ride. We negotiated dollar (pounds) numbers and came up with a deal that we are both happy with. The dealership move the FLHXSE3 on to a custom shop and the engine goes the same way to be re-built.
In return, in a weeks time, once I get off this rig in the North Sea offshore Scotland, I travel down to the dealership, sign over the registration documents on the FLHXSE3 and put my signature on the sales / registration papers and ride out on a brand spanking new
2016 FLHXSE in Carbon Crystal with Phantom Flames
The bike is sitting in the showroom right this very minute with my name on the
SOLD sticker keeping other folk's asses off my seat.

I think a very unfortunate situation has been turned around into a win win for both myself and the dealership. OK its costing me money that I wasn't going to spend for a few more years, and yes the dealership have taken a bit of a hit on the trade in value of a broken bike. But we are both happy with the outcome. Dealership gets nearer to it's end of year sales target and I am happy to have a fabulous ride with two year's warranty. Lesson learnt however, I will be buying the extra two year extended mechanical warranty. A wise move I think.
Any suggestion what tune I should choose to put into the BoomBox to ride out of the dealership.

Photo's will be posted of the new ride after I have physically sat on it.
Right, I better get back to work to pay for this CVO insanity.
One other thing, please don't ask me about what the dollar numbers amount to, that's between myself, the dealership and HD corporate.